How is online advertising priced?

At present, there are many forms of online advertising, such as banners, website sponsorship, mailing lists, search engines/portals, etc., among which banner advertising is dominant. According to data from PricewaterhouseCoopers and the American Online Advertising Bureau, banner advertisements account for 56% of all online advertisements. CPM (cost per 1 0,000 impressions) is the main pricing model of banner advertisements, that is, the online advertising cost per 1 0,000 impressions is usually based on the number of visitors to the page where the advertisement is located, and the cost per 1 0,000 impressions is $ 20-30. ?

How to buy web advertisements through CPM

Advertisers buy CPM according to their own advertising budget and the purpose they hope to achieve. ?

Advertising investment simulation case:?

An advertiser buys 10CPM( 1CPM= charge for every thousand visits) on the accounting online homepage every day, that is:?

Advertising investment: 10×20USD= 200USD per day?

Monthly: 30×000 USD = 6,000 USD.

Number of advertisement readers:10×1000 =10000 per day?

Month: 30× 1 10,000 = 300,000 people?

In other words, customer A spent $6,000 and directly let 300,000 people see its advertisement. On the other hand, if an advertiser has $65,438+$0,000 for online advertising and wants more than 300,000 people to see his advertisement, he can purchase the corresponding page and CPM according to the above example. ?

At present, advertisers are accusing CPM more and more, and the price of CPM is also declining. There are three main reasons:

1. The general view is that the purpose of online advertising is to attract target consumers to click, but it only allows consumers to witness banner advertisements with the usual size of 468×60 pixels or 125× 125 pixels, so the communication space is narrow and the effect is very small. The CPM pricing model is unreasonable when the average click-through rate of the whole industry is lower than 1%. ?

2. The number of websites has increased dramatically, and even the online advertising attendance rate of some mainstream websites is obviously insufficient: the range of advertisers' choices has expanded accordingly, and the power balance has changed further. Advertisers demand to adopt a pricing model closely related to sales to reduce the purchase risk. ?

3. The pricing method of 3.CPM is very good, which not only ensures the interests of advertisers, but also urges websites to build and promote themselves as much as possible to attract more traffic. The problem is that such traffic statistics are very easy to cheat. As we all know, CPM is charged according to the number of views. Cheating is very simple, you can reload the page automatically. What about using user sessions? This is as simple as writing a program to delete COOKIE or changing the proxy server and returning to the reload page. ?

Some people think that why more money is invested in online advertising, while the CPM cost of advertising is declining, which shows that advertisers find that the pricing method of CPM is wrong. How did they come to this conclusion? Facing CPM, elite businessmen will take out their calculators and do some small numerical thinking: If every thousand clicks cost 170 yuan, and most of them will actually enter billboards, then only one of these ten people will look for purchasing information, that is, I can win a new customer by spending 170 yuan. What about other ways? Suppose an exhibition at the "Fair" costs 50,000 yuan, but five contracts can be signed, and the average sales of each contract is 1000 pieces, so the marketing expenses equal to 10 yuan can get a customer. Do you still say that the Internet is a marketing tool with low price and wide coverage?

"If you can help me sell more products, I am willing to share some new profits with you." This sentence can be used by the tycoons of Wall Street for the managers of township enterprises in China, because they have the same name, businessman. Marketing doesn't knock someone down in fancy terms and make him pay for it. Marketing is to help the supply and demand sides meet in a simpler, faster and cheaper way. If your website can do this, it is no mystery to make money. ?

The above defects of CPM model naturally lead to the emergence of new advertising pricing methods. ?

For advertisers, it is more advantageous to use CPA instead of CPC or CPC instead of CPM.

If a visitor "clicks" on your advertising banner and closes the browser without further operation, the advertising effect is similar to the impression, but your advertiser has to pay the price of clicking, which is obviously unreasonable, and the CPA charging standard appears. ?

Actually, CPC belongs to CPA. For the domestic advertising market, CPM and CPC are the most common payment methods. Pay-per-click can not only stimulate the design of advertisements, but also help advertisers avoid risks. Although some people think that this will lead to the advertising impression generated by clicking on the advertisement becoming free. ?

For certified public accountants, the most important thing is to pay according to the transaction. But this requires a high level of technology and a complete tracking and monitoring system, involving the integration of multiple systems. There is no complete solution in China at present. However, there is no doubt that CPA is the general trend of online advertising payment. ?

Is CPM really out of date

At present, CPA is only a few cases in online advertising, and most of them are paid by CPM. Imagine that if you broadcast advertisements on traditional media such as TV, the audience will achieve the purpose of promoting the brand as long as they see the advertisements, and you will not ask consumers to contact you or reach a deal before agreeing to pay. This is not difficult to understand, because many consumers may see your banner advertisement, create a brand impression, and then produce purchase behavior. Both CPC and CPA are too harsh for websites. ?

When using CPM, CPA or CPC as billing quotation, many factors should be considered: product characteristics, advertising objectives, website editing environment, web advertising forms and so on. Generalization or blind pursuit of the wind is not acceptable.

Anyone with a little knowledge of advertising marketing should know that any marketing activity (including hard advertising) can only be implemented after its clear purpose is determined! Otherwise, it will be impossible to evaluate its actual effect! ?

Internet advertising activities should follow this universal law. Internet advertising is a new media, and new media should have more flexible purchase standards and measurement standards than traditional media, whether CPM, CPC or CPA, they are all designated standards and purchase standards to measure the effect of online advertising activities for different purposes! Network media has not yet become the mainstream media, so we need to conduct in-depth research on its characteristics, including its purchase and effect measurement standards. If we still mechanically follow some practices of traditional advertising media, it will only make advertisers gradually lose favor! ?

The research results of "Research Report on the Effect of Online Advertising" are quite different from most people's common sense. According to the report, banner advertisements have strong communication ability, and a "witness" can significantly improve the level of advertising perception, brand perception, brand evaluation and purchase intention, while "clicking" has little effect. ?

The survey results show that the CPM model based on the number of views is directly related to the advertising effect, and its existence has objective basis. We can't deny the rationality and necessity of CPM mode just because the click-through rate is low. ?

The existence of CPM pricing model is ultimately determined by the advantages of flag advertising:

1. has strong interactivity and high user acceptance. Different from the forced indoctrination of traditional media, online advertising requires users to actively participate and actively search for information, so advertising is easy to attract attention and its communication efficiency is higher than that of traditional media. The Statistical Report on China's Internet Development released this year by China Internet Network Information Center shows that 94% of people are "not disgusted" with online advertisements or have a friendly evaluation. In Hotwired's research report, less than110 is opposed to online advertising, and less than1100 is strongly opposed. ?

2. Banner ads have the advantages of traditional media, combining visual, auditory, static and dynamic means of expression: netizens are only 12- 18 inches away from online ads, which makes up for the limitation of narrow space to some extent. ?

3. Facing the deconstruction of focus, online advertising is more suitable for one-to-one marketing than any traditional media because of its powerful user information monitoring ability. ?

At present, the advertising noise of banner advertisements, that is, the mutual interference between advertisements, is less than that of traditional media. ?

With the implementation of e-commerce, new pricing models such as CPC, CPA, CPP, CPL and CPS will gain deeper soil than now, but CPM still dominates and various pricing models complement each other. It is predicted that a development trend of CPM in the future will be to combine with website sponsorship, that is, to let enterprises sponsor columns related to their business and put banner advertisements at the same time. For sponsors, they can not only get the exposure times of banner advertisements, but also communicate with website visitors in various ways, such as holding discussion forums, holding related lectures, conducting market research, developing online clubs and so on. Secondly, the application of various targeting tools can make advertisements closer to the target consumer groups, improve the advertising exposure efficiency and further strengthen the contact with sales. In addition, with the standardization of evaluation tools, the statistical data provided by the website will be more realistic, and the online advertising transaction with CPM as the price clause will be smoother.